Are the Direct subsidized/unsubsidized or PLUS loans financed through SJU?

No, the Direct Subsidized/Unsubsidized and PLUS Loans are financed through the federal government.


How can I complete the federal Direct PLUS loan application?

Parents of dependent undergraduate students without adverse credit history may borrow funds through this program. Parents may borrow the difference between the student’s total cost of education and all other aid the student is receiving. The 2019-2020 academic year interest rate is fixed at 7.079% for loans first disbursed on or after July 1, 2019 through June 30, 2020.  (The 2018-2019 academic year interest rate was fixed at 7.6% for loans first disbursed on or after July 1, 2018 through June 30, 2019).

Go to studentloans.gov and follow the outline below:

  1. Click the “Log In” button and use the Parent Information to sign in, this is the “PARENT” FSA ID used to electronically sign your FAFSA. This will be your electronic signature.  Apply for a FSA ID if you do not have one already. Once you have received your FSA ID, you can go to studentloans.gov in order to complete the PLUS Application.  Click Sign In and log in using your FSA ID.
  2. Click “Apply for Direct PLUS Loan” link
  3. Select Loan Type “Parent PLUS”
  4. Complete the PLUS Application for the correct award year (2019-2020 Award Year covers Fall 2019, Spring 2020 and Summer 2020)
  5. You will be asked for our school name, from the drop down menu choose “Saint Joseph’s University”
  6. You will be asked to choose the amount you wish to apply for. You may choose the maximum (the amount on your SJU Financial Aid Award Letter) or specify a lesser amount. Remember, loan amounts are processed annually and not by semester.
  7. You will receive a confirmation and a “Next Step” to complete the MPN for the name of the student.
  8. Sign the PLUS Master Promissory Note (MPN) The Federal Direct Plus Loan Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). If you are borrowing Direct PLUS Loans for more than one student, you’ll need to complete a separate MPN for each one.

**These online forms MUST be completed to receive a Federal Direct Parent PLUS Loan for Undergraduate Students.

Once you have completed the necessary steps, you will receive a confirmation e-mail.  If you receive the confirmation e-mail from Direct Lending, you do not need to check with SJU on the status of the loan.


How can I find more information about federal Direct graduate PLUS loans?

Direct Lending Graduate PLUS Promissory Note (Log into Manage my Direct Loan)

This program allows graduate students who do not have an adverse credit history to borrow up to the full cost of attendance, less other financial aid received, including Federal Direct Unsubsidized Loans. For the 2019-2020 academic year, the interest is fixed at 7.079% for loans with first disbursements on or after July 1, 2019 through June 30, 2020.  Interest accrual begins on the date of the first disbursement; the first payment is due within 60 days after the final disbursement.

Colleges determine eligibility for Federal Direct Unsubsidized Loans before determining any remaining eligibility for a Federal Direct Graduate PLUS Loan. The Office of Financial Aid will calculate the maximum a student may borrow through the Direct Graduate PLUS Loan program after completion of the Federal Direct Unsubsidized Loan application process. You can apply at https://studentloans.gov.


How can I find more information about Federal Direct Parent PLUS loans?

Direct Lending Parent PLUS Master Promissory Note(log into Manage my Direct Loan)
Credit-worthy parents of dependent undergraduate students may borrow funds through this program. Parents may borrow the difference between the student’s total cost of education and all other aid the student is receiving. The interest rate is fixed at 7.079% for the 2019-2020 academic year, for loans first disbursed on or after July 1, 2019. A current FAFSA is required to receive a PLUS loan.

Due to the Budget Control Act (BCA) of 2011, Direct Loan borrower repayment incentives have been terminated on all Federal Direct Loans, including Parent PLUS and Graduate PLUS Loans.  There will no longer be a rebate given on the loan fees. 

To calculate the amount needed for a Parent PLUS loan or alternative loan:

  • Take the Cost of Attendance (COA) figure listed on The Nest under the Award Overview tab
  • Subtract total accepted grants, scholarships and federal student loans
  • Do not include work study funds in this calculation. Funds are paid directly to students as earned.
  • This figure is your “out of pocket” expenses that you may choose to finance.
  • Apply for the Parent PLUS loan at https://studentloans.gov/myDirectLoan/index.action and log into Manage My Direct Loan.
  • Students must research and choose a lender for alternative loans, then notify Hawk Central once the funds are approved.

How do I calculate the amount need for a Federal Direct Parent PLUS loan or alternative loan?

  • Log onto The Nest
  • Go to the Tuition & Aid Page
  • Select Financial Aid Awards: Accept/Decline offer
  • Under the Award Overview tab, take the Cost of Attendance (COA) figure listed
  • Subtract total accepted grants, scholarships and federal student loans
  • Do not include work study funds in this calculation. Funds are paid directly to students as earned.
  • This figure is your “out of pocket” expenses that you may choose to finance.
  • Apply for the Parent PLUS loan at https://studentloans.gov/.

In calculating the plus loan amount needed, you will want to consider the loan origination fees of 4.264% collected by the lender for a parent plus loan. This amount will reduce the total amount requested by 4.264%. Additionally, it is standard practice for loans to be set up as a fall/spring loan, thus the total amount needed from the fall bill should be doubled to cover the spring balance as well.

Students must research and choose a lender for alternative loans, then notify The Office of Financial Aid once the funds are approved.